Post on 31-Mar-2019
“Biomass in South-East Europe”
Berlin, 29 October 2009.
Republic of Serbia - Ministry of Mining and Energy
Dejan Stojadinovic, Assistant Minister
Serbia
Biomass
For
Energy
2
Potentials
(Mtoe)
Biomass 2.40
SHPP 0.40
Solar 0.64
Geothermal 0.20
Wind 0.19
TOTAL 3.83
Serbia’s endowment of renewable energy resources is substantial
- realization of these potentials require Government action
Biomass
63%SHPP
10%
Solar
17%
Geothermal
5%
Wind
5%
RES Technical Potential
Clear technical potential of renewable energy - insufficient information
about the economic potential
3
Biomass Resources
Agricultural land (ha) 5,701,000
Arable land (ha) 4,867,000
Number of farms 778,000
Average size of farm (ha) 3
Serbia covers 8,836,000 ha
Forest area (ha)
2,252,400
29.1% (target
41%)
Annual increment of wood
biomass (mil m³)9.08
Annual increment per hectare
(m³ /per ha)4
PRIVATELY OWNED 47%
STATE OWNED 53%
AGRICULTURE FORESTRY
4
Agricultural Biomass
Fruit growing residues
Biomass residues
(1,000 tones)
Plum 393.5
Apple 36.2
Cherries 55.0
Pear 14.0
Peach 35.1
Apricot 15.5
Walnuts 55.0
Grapes 515.0
TOTAL 1,119.3
Crop farming residues
1/3 available for Energy Use
Total residues
(1,000 tones)
Residues for
Energy Use
(1,000 tones)
Wheat 2,905 1,365
Barley 295 180
Rye 15.5 4.4
Corn 5,310 1,140
Sunflower 705 240
Soybean 320 130
Rapeseed 7.8 1.6
TOTAL 9,560 3,060
Agriculture biomass 1.4 Mtoe
Most promising utilization options for agricultural biomass
•Co-generation utilizing agricultural wastes
5
Biogas Potentials
•Livestock farming and crop production – traditional
•Farms: large scale pig farm and dairy operations (about 80%)
•Medium and small scale pig farms
•No operational facilities for biogas production
Farm Type of
Animals
Headcount Methane
emissions
tCH4/yr
GHG
Emissions
tCO2e/yrNeoplanta Pigs 150,000 2,577 54,119
PKB Cattle 22,000 3,023 63,500
Napredak Pigs 30,000 150 10,824
Dragan Markovic Pigs 22,469 386 8,107
Vizelj Pigs 17,109 293 6,137
Pantomarket Stocar Cattle 1,700 233 4,907
Kovacevic Cattle 1,200 164 3,469
Kuc Company Cattle 1,000 137 2,886
Klanica Divci Cattle 2,000 274 5,773
Pepu Pork Pigs 9,650 165 3,482
PIK Bicej Pigs 56,000 280 5,880
Estimated total potential for production of biogas from manure – 220,000 m³/day
6
Biofuels
Considered 350,000 ha of marginal land
suitable for production of raw materials
Sowing structure
Potential
production of
biodiesel (t)
100% rapeseed 212,800
70% rapeseed
30% sunflower224,140
50% rapeseed
50% sunflower231,700
30% rapeseed
70% sunflower239,260
100% sunflower 250,600
100% soya 141,750
10,000 t/year of waste oils
Market excess of 1,000,000 t of corn and wheat
could be considered for the production of bio-
ethanol
Potential production of bio-ethanol – 300,000 t
BIODIESEL BIOETHANOL
Largest facility for production of biodiesel
VICTORIA OIL – Sid
www.biodizel.rs
www.victoriagroup.rs
Capacity of 100,000 t
7
Wood Biomass
• Potential wood harvest in Serbian forests is 4.6 million m3 annually
•Available amount of forest wood residue is 572,000 m³ annually
•In wood processing companies – 35% of the total amount of wood residue is used for heating and drying of wood,
while the rest is sold on the market
•Main buyers of wood residue from sawmill wood processing are producers of wood based panels and pellets
FAO Study on Wood Biomass in Serbia
•More than 1,500 saw mills in Serbia
• Annual production of wood pellets – 80,000 t
•Annual production of wood briquettes – 90,000 t
•Annual production of fuel wood – 4 mil m³
Current production of wood biomass products
Most promising utilization options for biomass
•Space heating in households and buildings using biomass pellets
or briquettes
•Co-firing or total replacement in district heating plants firing heavy
oil or coal in south Serbia, where natural gas is not available yet
8
Wood Biomass Producers
•DRVOPROMET - Leskovac
•VAROTECH - Mladenovo
•BRIKO – Nova Varos
•KANCOM – Nova Pazova (www.eurokancom.com)
WOOD BRIQUETTES
•ZELENA DRINA – Bajina Basta (www.crabo.it)
•BIOENERGY POINT – Boljevac (www.point-group.com)
•BIOTHERM – Guca (www.bio-therm.net)
•O3 – Bajina Basta
•FOREST ENTERPRISE - Doljevac
WOOD PELLETS
•SRBIJASUME
Public Enterprise, state-owned, manage 965,000 ha of
forests (www.srbijasume.rs)
•VOJVODINASUME
Public Enterprise, state-owned, manage 130,000 ha of
forests (www.vojvodinasume.rs)
FUEL WOOD
•KIRKA-SURI – Beograd (www.kirka-suri.com)
•RADIJATOR – Kraljevo (www.radijator.rs)
•ALFAPLAM – Vranje (www.alfaplam.rs)
WOOD BIOMASS BOILERS
9
Wood Biomass Market
•Consumption of briquettes is growing
•Production cost of wood briquettes is 60 – 70 EUR/t
•Retail price of domestically produced briquettes from sawdust is 105 - 125 EUR/t
•Retail price of imported briquettes is around 210 EUR/t
•Retail price of boilers for biomass briquettes of German production for households is 770 EUR (25kW) – 1,200 EUR (45kw)
•Price of locally produced biomass boiler of power is 770 EUR (25 kW) - 1,200 EUR (40kW)
Wood Briquettes Market
•Retail price of coniferous pellets is around 160 EUR/t, while beech pellets are around 130 EUR/t
•Retail price of pellet stove of German production is 2,700 (2.2 kW) – 4,250 EUR (9,3 kW)
•Retail price of locally produced pellet stove is around 960 EUR
Wood Pellets Market
•Wood is mostly used by rural households - burnt in open fireboxes or inadequate stoves with poor energy efficiency
•It is estimated that 778,000 rural households in Serbia use wood for heating during winter months
•Price of wood residues by Srbijasume is 25 EUR/t
•Private forest owners sell firewood by the price of 41 EUR/prm including transport (prm - space meter; 1m³ = 1.45 prm)
•Retail price of firewood including VAT (8%) in Belgrade is 49 EUR/prm including transport and up to 54 EUR/prm including
transport and cutting of wood
Fuel Wood Market
10
Biomass Policy
GOALS OF BIOMASS POLICY IN SERBIA
Efficient use of available resources for the production of energy
Reduction of GHG emissions
Decrease of import dependance
Creation of new jobs
Development of
biomass market
Increased
production and
consumption of
energy from
biomass
11
Institutional Stakeholders
MINISTRY OF
SCIENCE AND
TECHNOLOGY
MINISTRY OF
MINING AND
ENERGY
MINISTRY OF
ENVIRONMENT AND
SPATIAL PLANNING
Renewable energy and
energy efficiency policy
development and
implementation
Technology dissemination
and demonstration facilities
Building standards
Some energy efficiency
provisions
Implementation of the
Strategy of Sustainable
Development
COUNCIL FOR
SUSTAINABLE
DEVELOPMENT –
Office of the Deputy
Prime Minister for EU
Integration
ENERGY
EFFICIENCY
AGENCY AND
REGIONAL CENTRES
Sectoral energy efficiency
programs
Training and public
awareness campaigns
Belgrade, Novi Sad, Nis,
Kragujevac, Kraljevo
ENVIRONMENTAL
PROTECTION FUND
Financing some energy
efficiency and renewable
energy programs
Grants and loans
MINISTRY OF
AGRICULTURE,
FORESTRY AND
WATER
RESOURCES
Building standards
Some energy efficiency
provisions
Council for Biomass use
Implementation of the RES
policy in Vojvodina
PROVINCIAL
SECRETARIAT FOR
ENERGY AND
MINERAL
RESOURCES
12
Legal Framework for biomass use
• Energy Law (OJ RS 84/04) provides the overall foundation
for development of renewable energy sources and energy
efficiency
• Energy Sector Development Strategy of Republic of Serbia
by 2015. (2005) emphasize importance of utilization of
renewable energy sources for distributed heat and power
generation and recognize Serbian Energy Efficiency Agency,
Energy Efficiency Fund and introduction of support schemes
as the main instruments for the achievement of these goals
• Programme for Implementation of Energy Sector
Development Strategy 2007-2012 (2007) elaborate Strategy
in more details and define priorities for utilization of
renewable energy sources. Programme is updated every two
year, and next update will be prepared for the period 2009-
2011
• Regulation on technical and other requirements of liquid
biofuels (OJ S&M 23/06) defines technical requirements for
biodiesel and biofuels
• Construction Law – Key for investing/construction
licence
• Law on Environmental Protection (2004)
• Law on Strategic Environmental Assessment
• Law on Environmental Impact Assessment
• Integrated Pollution Prevention and Control Law - IPPC
licence needed for the biomass intallations
• Law on Waste Management – Use of residue materials
for the production of biogas and biodiesel, landfills
• Law on Air Quality – limits emissions for the facilities
that use biomass as a fuel
• Kyoto Protocol - Non-Annex I country, eligible for CDM
projects
MINISTRY OF MINING AND ENERGY –
www.mre.gov.rs
MINISTRY OF ENVIRONMENT AND SPATIAL
PLANNING – www.ekoplan.gov.rs
NATIONAL ACTION PLAN FOR BIOMASS USE – in preparation
13
Barriers for wider use of biomass
•Lack of experience
Absence of “first set” of projects
•Transition Issues
Many industrial companies are in transition – both with regard to structure and
ownership, and managements are not yet ready to consider measures to rationalize
energy activities
•Electricity tariff
Low electricity tariff does not stipulate domestic, commercial and industrial consumers
to use renewable energy - current average price is under 5 €cents/kWh
•Biomass market
No developed market for biomass fuel and biomass utilisation facilities
14
Proposed feed-in tariffs for production of electricity
a purchase price, expressed in c€/kWh, is guaranteed and fixed during the 12-year period.
The level of a purchase price is set to provide invested capital returned in 12 years, with
covering all operating costs incurred during the same period;
additional criteria for setting the feed-in tariff is to have the internal rate of return at least
14%, i.e. not below this percentage
Biomass CHP feed-in tariff (c€/kWh)
Installation up to 500 kW 13,6
Installation between 500 kW and 5 MW 13,845 – 0,489*Р
Installation larger than 5 MW 11,4
Biogas feed-in tariff(c€/kWh)
Installation up to 200 kW 16
Installation between 200 kW and 2 MW 16,444 – 2,222*Р
Installation larger than 2 MW 12
P – Installed Capacity in MW
15
Investment incentives applicable to RES projects
INVESTMENT INCENTIVES
In case of investments in production facility, Government approve grant between 2000 and 5000 euros per
new job creation, minimal investment value is within the range of 1 and 3 million euros, whereas the minimal
number of new jobs is 50
An investor that invests in fixed assets, i.e. in whose fixed assets other entity invests over 600 million RSD
(6.8 million EUR), and uses these assets for conducting business in Serba and during the investment period
additionally recruit at least 100 people - shall be exempted from corporate profit tax payments for the period
of 10 years proportionally with the investment made
TAX CREDITS
A tax payer that made profit in newly established business unit in an underdeveloped area will receive a
corporate profit tax reduction in the duration of two years, proportional to the share of such made profit in
total profit of the company
ACCELERATED DEPRECIATION OF FIXED ASSETS
This incentive is provided for fixed assets that are used for the prevention of air pollution, water and soil
pollution, noise reduction, energy savings, forestation, and collection and utilization of waste for industrial
raw materials and fuels
FOREIGN INVESTMENTS INCENTIVES
The law on foreign investments stipulates free import of goods that are the foreign investor’s nominal capital
(founding capital) – providing it fulfils acts regulating environment protection. Import of equipment as the
founding capital of a foreign investor, except for passenger motor vehicles and game & gambling machines,
is free from customs and other duties. Besides, a foreign investor and a company with foreign founding
capital are entitled to tax and customs related deductions in line with the law